What changed in this filing

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Item 1. Financial Statements

2025-05-13 compared with 2024-11-12 · 204 added, 188 removed, 241 unchanged (62% of the section changed)

1 unchanged sentence

ARK 21SHARES BITCOIN ETF

STATEMENTS OF ASSETS AND LIABILITIES

STATEMENT OF ASSETS AND LIABILITIES

(Amounts in thousands, except Share and per

Share amounts)

September 30,

Investment in bitcoin, at fair value (cost $ 3,548,730 and $ 3,077,870 , respectively)

1 unchanged sentence

Capital shares payable

Sponsor’s fee payable

Sponsor fee payable

Total liabilities

Commitments and contingent liabilities (Note 9)

Net assets consists of

3 unchanged sentences

Net asset value per share

1 Amount rounds to less than $1,000.

See Note 1 to the Unaudited Notes to Financial Statements.

The accompanying notes are an integral part of the Financial Statements.

The accompanying notes are an integral part of the financial

ARK 21SHARES BITCOIN ETF

SCHEDULE OF INVESTMENT

SCHEDULES OF INVESTMENT

(Amounts in thousands, except quantity of bitcoin

and percentages)

September 30, 2024 * (Unaudited)

March 31, 2025 (Unaudited)

Investment in bitcoin

1 unchanged sentence

Liabilities in excess of other assets

* No comparative schedule has been provided as the Trust did not hold any bitcoin as of December 31, 2023.

December 31, 2024

Investment in bitcoin

Total investments

Liabilities in excess of other assets

The accompanying notes are an integral part of the financial statements.

2 unchanged sentences

(Amounts in thousands)

September 30,

nine months ended

September 30,

Sponsor’s fee

Total expenses

2 unchanged sentences

Realized and change in unrealized gain (loss)

Net realized gain on investment in bitcoin sold to pay Sponsor’s fee

Net realized gain on investment in bitcoin sold for redemptions

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain (loss) on investment in bitcoin sold for redemptions

Net change in unrealized appreciation (depreciation) on investment in bitcoin

Net change in unrealized gain on Sponsor fee payable

Net realized and change in unrealized gain (loss)

Net increase in net assets resulting from operations

* No prior year comparative statement

has been provided as this is the first fiscal year of the Trust’s operations.

The accompanying notes are an integral part of the Financial Statements.

Net increase (decrease) in net assets resulting from

$ ( 587,548 )

The accompanying notes are an integral part

of the financial statements.

ARK 21SHARES BITCOIN ETF

STATEMENTS OF CHANGES IN NET ASSETS

(Amounts in thousands, except change in Shares issued

and redeemed)

September 30,

(Amounts in thousands, except change in Shares

issued and redeemed)

Net assets, beginning of period

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Net investment loss

Net realized gain on investment in bitcoin sold to pay Sponsor’s fee

Net realized gain on investment in bitcoin sold for redemptions

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain (loss) on investment in bitcoin sold for redemptions

Net change in unrealized appreciation (depreciation) on investment in bitcoin

Net change in unrealized gain on Sponsor fee payable

Net assets, end of period

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( 16,940,000 )

( 25,040,002 )

Net increase in Shares issued

* No prior year comparative statement

has been provided as this is the first fiscal year of the Trust’s operations.

1 Amount rounds to less than

See Note 1 to the Unaudited Notes to Financial Statements.

The accompanying notes are an integral part of the Financial Statements.

Financial Statements (Unaudited)

The ARK 21Shares Bitcoin

ETF (the “Trust”) is a Delaware statutory trust, formed on June 22, 2021, pursuant to the Delaware Statutory Trust Act

The accompanying notes are an integral part

of the financial statements.

21Shares Bitcoin ETF

to Financial Statements (Unaudited)

The ARK 21Shares Bitcoin ETF

(the “Trust”) is a Delaware statutory trust, formed on June 22, 2021, pursuant to the Delaware Statutory Trust Act (“DSTA”).

The Trust operates pursuant to an Amended and Restated Trust Agreement (the “Trust Agreement”).

Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and

controlled by 21Shares US LLC (the “Sponsor”).

The Sponsor is a limited liability company formed in the state of

Delaware on June 16, 2021, and is a wholly owned subsidiary of Jura Pentium Inc., whose ultimate parent company is 21co Holdings

Limited (formerly known as Amun Holdings Limited).

Coinbase Custody Trust Company, LLC (“Coinbase”), BitGo New York

Trust Company, LLC (“BitGo”), and Anchorage Digital Bank N.A.

(“Anchorage”, and, together with Coinbase and

BitGo, as the context may require, the “Custodian”, “Custodians” and each a “Custodian”) are the

custodians for the Trust and will hold all of the Trust’s bitcoin on the Trust’s behalf.

The transfer agent (the

“Transfer Agent”) and the administrator for the Trust (the “Administrator”) is Bank of New York Mellon.

Shares were listed for trading on the Cboe BZX Exchange, Inc.

(the “Exchange”) on January 11, 2024, under the ticker symbol

Delaware Trust Company, a

Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by 21Shares US LLC

(the “Sponsor”).

The Sponsor is a limited liability company formed in the state of Delaware on June 16, 2021, and is a wholly

owned subsidiary of Jura Pentium Inc., whose ultimate parent company is 21co Holdings Limited (formerly known as Amun Holdings Limited).

Coinbase Custody Trust Company, LLC (“Coinbase”), BitGo New York Trust Company, LLC (“BitGo”), and Anchorage Digital

(“Anchorage”, and, together with Coinbase and BitGo, as the context may require, the “Custodian”, “Custodians”

and each a “Custodian”) are the custodians for the Trust and hold all of the Trust’s bitcoin on the Trust’s behalf.

The transfer agent (the “Transfer Agent”), the administrator for the Trust (the “Administrator”), and the cash

custodian (the “Cash Custodian”), is Bank of New York Mellon.

The Trust is an exchange-traded

fund that issues units of beneficial interest (the “Shares”) representing fractional undivided beneficial interests in its

net assets that trade on Cboe BZX Exchange, Inc.

(the “Exchange”).

The Shares were listed for trading on the Exchange on January

11, 2024, under the ticker symbol “ARKB”.

The Trust’s investment

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at a per-Share price of $ 50.00 , as described in “Seed Capital Investor.” Total proceeds to the Trust from the sale of these

Seed Creation Baskets were $ 100 .

Delivery of the Seed Creation Baskets was made on December 12, 2023.

These Seed Creation Baskets were

redeemed for cash on or about January 5, 2024.

Initial Seed Shares were $ 100 .

Delivery of the Seed Shares was made on December 12, 2023.

These Seed Shares were redeemed for cash on

or about January 5, 2024.

On January 9, 2024 (the “Seed

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The statements of assets and

liabilities and schedule of investments on September 30, 2024, and the statements of operations and changes in net assets for the three

and nine months ended September 30, 2024, have been prepared on behalf of the Trust and are unaudited.

In the opinion of management of

the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position

and results of operations for the three and nine months ended September 30, 2024, and for all interim periods presented have been made.

In addition, interim period results are not necessarily indicative of results for a full-year period.

liabilities and schedule of investments on March 31, 2025, and the statements of operations and changes in net assets for the three months

ended March 31, 2025 and 2024, have been prepared on behalf of the Trust and are unaudited.

In the opinion of management of the Sponsor

of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results

of operations for the three months ended March 31, 2025 and 2024, and for all interim periods presented have been made.

In addition, interim

period results are not necessarily indicative of results for a full-year period.

The fiscal year of the Trust

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the bitcoin principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with

the application of the fair value measurement framework in FASB ASC 820.

A principal market is the market with the greatest volume and

activity level for the asset or liability.

The determination of the principal market will be based on the market with the greatest volume

and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information and based on initial analysis

will select an exchange market as the Trust’s principal market.

The net asset value (“NAV”) and NAV per Share will be

calculated using the fair value of bitcoin based on the price provided by this exchange market, as of 4:00 p.m.

ET on the measurement

date for GAAP purposes.

The Trust will update its principal market analysis periodically and as needed to the extent that events have

occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

the application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the market

with the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based on the

market with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information

and based on initial analysis will select an exchange market as the Trust’s principal market.

The net asset value (“NAV”)

and NAV per Share will be calculated using the fair value of bitcoin based on the price provided by this exchange market, as of 4:00 p.m.

ET on the measurement date for GAAP purposes.

The Trust will update its principal market analysis periodically and as needed to the extent

that events have occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

Various inputs are used in

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of the fair value hierarchy are as follows:

Unadjusted quoted prices in active markets for identical assets

or liabilities;

Inputs other than quoted prices included within Level 1 that

are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in

active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs

other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated

by observable market data by correlation or other means;

Unobservable inputs, including the Trust’s assumptions

used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement

Unadjusted quoted prices in

active markets for identical assets or liabilities;

Inputs other than quoted prices

included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar

assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered

to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally

from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including

the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity for the asset

or liability at the measurement date.

Fair Value Measurement Using

(Amounts in thousands)

September 30, 2024

March 31, 2025 (Unaudited)

Investment in bitcoin

* No comparative schedule has been provided as the Trust did

not hold any bitcoin as of December 31, 2023.

Fair Value Measurement Using

(Amounts in thousands)

December 31, 2024

Investment in bitcoin

The cost basis of the investment

in bitcoin recorded by the Trust for financial reporting purposes is the fair value of bitcoin at the time of transfer.

in bitcoin recorded by the Trust for financial reporting purposes is the fair value of bitcoin at the time of purchase.

The cost basis

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and NAV per Share

On each day other than a Saturday

or Sunday, or a day on which Cboe BZX Exchange is closed for regular trading (a “Business Day”), as soon as practicable after

(Eastern Time), the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities

of the Trust from the fair value of the bitcoin and other assets held by the Trust.

The Trustee computes the net asset value per Share

by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

On each day other than when

the Exchange is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m.

(Eastern Time), the net

asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value

of the bitcoin and other assets held by the Trust using the index price.

The Trustee computes the NAV per Share by dividing the NAV of

the Trust by the number of Shares outstanding on the date the computation is made.

Federal Income Taxes

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will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s income,

gain, losses and deductions will “flow through” to each beneficial owner of Shares.

gain, losses and deductions will “pass through” to each beneficial owner of Shares.

If the Trust sells bitcoin (for example,

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on such sale.

The Sponsor has reviewed the tax positions as of September 30, 2024, and has determined that no provision for income tax

is required in the Trust’s financial statements.

Recently Issued Accounting Pronouncement

In December 2023, the FASB issued Accounting Standards

Update (“ASU”) 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60):

Accounting for and Disclosure

of Crypto Assets (“ASU 2023-08”).

ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring

an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income.

amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about

significant holdings, contractual sale restrictions, and changes during the reporting period.

ASU 2023-08 is effective for annual and

interim reporting periods beginning after December 15, 2024.

Early adoption is permitted for both interim and annual financial statements

that have not yet been issued.

The Trust adopted this new guidance with no material impact on its financial statements and disclosures

as the Trust uses fair value as its method of accounting for bitcoin in accordance with its classification as an investment company for

accounting purposes.

The Sponsor has reviewed the tax positions as of March 31, 2025, and has determined that no provision for income tax is

required in the Trust’s financial statements.

Segment Reporting

The Trust operates in

The segment derives its revenues from Trust investments made in accordance with the defined investment strategy of the

Trust, as prescribed in the Trust’s prospectus.

The Chief Operating Decision Maker (“CODM”) is the Sponsor.

CODM monitors the operating results of the Trust.

The financial information that the CODM leverages to assess the segment’s

performance and to make decisions for the Trust’s single segment is consistent with the financial information that is

presented within the Trust’s financial statements.

Segment assets are reflected on the accompanying Statements of Assets and Liabilities as Total assets and the only significant segment

expense, the Sponsor fee, is included in the accompanying Statements of Operations.

Fair Value of Bitcoin

The following represents the

changes in quantity of bitcoin and the respective fair value on September 30, 2024 *:

The following represents the changes in quantity of bitcoin and the

respective fair value on March 31, 2025 (Unaudited) and December 31, 2024

(Amounts in thousands, except Quantity of bitcoin)

3 unchanged sentences

( 1,544,376 )

Net realized gain on investment in bitcoin sold to pay Sponsor’s fee

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Change in unrealized appreciation on investment in bitcoin

Ending balance as of September 30, 2024 *

* No prior year comparative period presented as this is the first

fiscal year of the Trust’s operations.

The Trust pays the unitary

Sponsor Fee of 0.21 % of the Trust’s bitcoin holdings.

The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services

performed under the Trust Agreement.

The Sponsor agreed to waive the entire Sponsor Fee for (i) a nine-month period which commenced on

January 11, 2024 (the day the Trust’s Shares were initially listed on the Exchange), or (ii) the first $ 1 billion of Trust assets, whichever

The Trust assets exceeded $ 1 billion prior to the end of the nine-month period, at which time the waiver period ended.

Ending balance as of March 31, 2025

(Amounts in thousands, except Quantity of bitcoin)

Beginning balance as of January 1, 2024

Bitcoin purchased

( 48,891.5263 )

( 3,448,694 )

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Change in unrealized appreciation on investment in bitcoin

Ending balance as of December 31, 2024

Trust Expenses

The Trust pays the

unitary Sponsor Fee of 0.21 % of the Trust’s bitcoin holdings.

The Sponsor Fee is paid by the Trust to the Sponsor as

compensation for services performed under the Trust Agreement.

The Sponsor agreed to waive the entire Sponsor Fee for (i) a

nine-month period which commenced on January 11, 2024 (the day the Trust’s Shares were initially listed on the Exchange), or

(ii) the first $ 1 billion of Trust assets, whichever came first.

The Trust assets exceeded $ 1 billion in February 2024, at which

time the waiver period ended.

Except for during periods during which the Sponsor Fee has been waived, the Sponsor Fee accrues daily

and is payable in bitcoin weekly in arrears.

The Administrator calculates the Sponsor Fee on a daily basis by applying a 0.21 %

annualized rate to the Trust’s total bitcoin holdings, and the amount of bitcoin payable in respect of each daily accrual is

determined by reference to the Index.

The Trust incurred Sponsor Fees for the quarters ended March 31, 2025 and 2024 of $ 2,367,167 and $ 627,659 net of Sponsor Fee waived of

$ 93,111 , respectively.

The accrued liability at March 31, 2025 and December 31, 2024 was $ 753,353 and $ 357,613 .

The Sponsor has agreed

to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor Fee.

The Sponsor has agreed to

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assumed by the Sponsor include (i) fees to the Sub-Adviser;

(ii) the Marketing Fee, (iii) fees to the administrator, if any, (iv) fees

to the bitcoin Custodians, (v) fees to the Transfer Agent, (vi) fees to the Trustee, (vii) the fees and expenses related to any future

listing, trading or quotation of the Shares on any listing exchange or quotation system (including legal, marketing and audit fees and

expenses), (viii) ordinary course legal fees and expenses but not litigation-related expenses, (ix) audit fees, (x) regulatory fees, including,

if applicable, any fees relating to the registration of the Shares under the 1933 Act or Exchange Act, (xi) printing and mailing costs;

(xii) costs of maintaining the Trust’s website and (xiii) applicable license fees (each, a “Sponsor-paid Expense,” and

together, the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Additional Trust Expense (as defined

below) will be deemed to be an Additional Trust Expense and not a Sponsor-paid Expense.

The Sponsor will not, however,

assume certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental

charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust

to protect the Trust or the interests of Shareholders, any indemnification of the bitcoin Custodians, Administrator or other agents, service

providers or counter-parties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and expenses, including

any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Additional

(ii) the fee payable to marketing agents for services provided to the Trust

(the “Marketing Fee”), (iii) fees to the Administrator, if any, (iv) fees to the bitcoin Custodians, (v) fees to the Transfer

Agent, (vi) fees to the Trustee, (vii) the fees and expenses related to any future listing, trading or quotation of the Shares on any

listing exchange or quotation system (including legal, marketing and audit fees and expenses), (viii) ordinary course legal fees and expenses

but not litigation-related expenses, (ix) audit fees, (x) regulatory fees, including, if applicable, any fees relating to the registration

of the Shares under the Securities Act or Exchange Act, (xi) printing and mailing costs;

(xii) costs of maintaining the Sponsor’s website

and (xiii) applicable license fees (each, a “Sponsor-paid Expense,” and together, the “Sponsor-paid Expenses”), provided

that any expense that qualifies as an Additional Trust Expense (as defined below) will be deemed to be an Additional Trust Expense and

not a Sponsor-paid Expense.

The Sponsor will not, however, assume certain

extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental charges,

expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect

the Trust or the interests of Shareholders, any indemnification of the bitcoin Custodians, Administrator or other agents, service providers

or counter-parties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and expenses, including any

legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Additional

Trust Expenses”).

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In the Sponsor’s sole discretion, all or any portion of a Sponsor-paid Expense may be re-designated as an Additional Trust

To the extent that the Sponsor does not voluntarily assume expenses, they will be the responsibility of the Trust.

also pays the costs of the Trust’s organization and offering.

The Trust is not obligated to repay any such costs related to the

Trust’s organization and offering paid by the Sponsor.

To the extent that the Sponsor

does not voluntarily assume expenses, they will be the responsibility of the Trust.

The Sponsor also pays the costs of the Trust’s

organization and offering.

The Trust is not obligated to repay any such costs related to the Trust’s organization and offering paid

by the Sponsor.

Creation and Redemption of Shares

The Trust creates and redeems

Shares on a continuous basis but only in Creation Units consisting of 5,000 Shares or multiples thereof.

Only Authorized Participants,

which are registered broker-dealers who have entered into written agreements with the Sponsor and the Administrator, can place orders.

The Trust engages in bitcoin transactions for converting cash into bitcoin (in association with purchase orders) and bitcoin into cash

(in association with redemption orders).

The Trust conducts its bitcoin purchase and sale transactions by, in its sole discretion, choosing

to trade directly with third parties (each, a “bitcoin Trading Counterparty”), who are not registered broker-dealers pursuant

to written agreements between such bitcoin Trading Counterparties and the Trust, or choosing to trade through the Prime Broker acting

in an agency capacity with third parties through its Coinbase Prime service pursuant to the Prime Broker Agreement.

A bitcoin Trading

Counterparty may be an affiliate of an Authorized Participant.

The Authorized Participants deliver only cash to create Shares and receive

only cash when redeeming Shares.

Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive

bitcoin as part of the creation or redemption process or otherwise direct the Trust or a third-party with respect to purchasing, holding,

delivering, or receiving bitcoin as part of the creation or redemption process.

Shares at the NAV of date of the creation and redemption on a continuous basis but only in Creation Baskets consisting of 5,000 Shares

or multiples thereof.

Only Authorized Participants, which are registered broker-dealers who have entered into written agreements with

the Sponsor and the Administrator, can place orders.

The Trust engages in bitcoin transactions for converting cash into bitcoin (in association

with purchase orders) and bitcoin into cash (in association with redemption orders).

The Trust conducts its bitcoin purchase and sale

transactions by, in its sole discretion, choosing to trade directly with third parties (each, a “bitcoin Trading Counterparty”),

who are not registered broker-dealers pursuant to written agreements between such bitcoin Trading Counterparties and the Trust, or choosing

to trade through the Prime Broker acting in an agency capacity with third parties through its Coinbase Prime service pursuant to the Prime

Broker Agreement.

A bitcoin Trading Counterparty may be an affiliate of an Authorized Participant.

The Authorized Participants

deliver only cash to create Shares and receive only cash when redeeming Shares.

Further, Authorized Participants will not directly or

indirectly purchase, hold, deliver, or receive bitcoin as part of the creation or redemption process or otherwise direct the Trust or

a third-party with respect to purchasing, holding, delivering, or receiving bitcoin as part of the creation or redemption process.

The Trust creates Shares by

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is unaffiliated with the Trust and the Sponsor.

September 30,

Activity in Capital Transactions Issued and Redeemed:

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( 16,940,000 )

( 25,040,002 )

Net Change in Capital Transactions Issued and Redeemed

(Amounts in thousands)

September 30,

Activity in Capital Transactions Issued and Redeemed:

Shares issued

2 unchanged sentences

Net Change in Capital Transactions Issued and Redeemed

* No prior year comparative table

has been provided as this is the first fiscal year of the Trust’s operations.

Bitcoin purchased payable

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within two Business Days of the trade date.

September 30,

(Amounts in thousands)

Bitcoin purchased payable

* No prior year comparative table has been provided as this is the first fiscal year of the Trust’s operations.

Bitcoin sold receivable represents

2 unchanged sentences

within two Business Days of the trade date.

September 30,

(Amounts in thousands)

Bitcoin sold receivable

* No prior year comparative table

has been provided as this is the first fiscal year of the Trust’s operations.

Related Parties

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companies and external service providers.

As of September 30, 2024,

the Sponsor owned zero Shares of the Trust.

As of March 31, 2025, the

Sponsor did not own any Shares of the Trust.

The Sponsor arranged for the

2 unchanged sentences

Financial Highlights

Per Share Performance (for a Share

outstanding throughout each period presented)

September 30,

Per Share Performance (for a Share outstanding throughout the periods presented)

Net asset value per Share, beginning of period

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Gross expenses

* No prior year comparative financial statements have been provided

as this is the first fiscal year of the Trust’s operations.

(1) Calculated using average Shares outstanding.

(2) The amount shown for a share outstanding throughout the year

may not agree with the change in the aggregate gains and losses for the year because of the timing of sales and repurchases of the Trust’s

shares in relation to fluctuating market values for the Trust.

(3) Total return is calculated based on the change in value during

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(4) Annualized.

(5) Not Annualized.

Commitments and Contingent Liabilities

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However, the Sponsor believes the risk of loss under these arrangements to be remote.

Concentration Risk

Unlike other funds that may

invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class.

This concentration

maximizes the degree of the Trust’s exposure to a variety of market risks associated with bitcoin and digital assets.

By concentrating

its investment strategy solely in bitcoin, any losses suffered as a result of a decrease in the value of ether can be expected to reduce

the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were

Indemnification

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shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless

against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence,

against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence,

bad faith, or willful misconduct.

1 unchanged sentence

opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee,

the Trustee’s counsel or by any other person for any matters arising under the Declaration of Trust.

The Sponsor shall in no event

be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly

provided for in the Declaration of Trust.

Such indemnity includes payment from the Trust of the costs and expenses incurred in defending

against any indemnified claim or liability under the Declaration of Trust.

the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement.

The Sponsor shall in no event be

deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided

for in the Trust Agreement.

Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any

indemnified claim or liability under the Trust Agreement.

The Trustee will not be liable

or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except

for the Trustee’s breach of its obligations pursuant to the Declaration of Trust or its own willful misconduct, bad faith or gross

The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by

the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation,

operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated

provided that the indemnified party acted without willful misconduct, bad faith or gross negligence.

for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence.

The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from

and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation

or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby;

that the indemnified party acted without willful misconduct, bad faith or gross negligence.

Subsequent Events

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements